New Vat 15 launched on 31-01-2013

Finally Excise and Taxation Department of Punjab has launched Vat 15 on 31-01-2013
It is required to be submitted till 5th March 2013
Following issues were raised before Vat Department before launch:

1.        In VAT 23, address information of city is further categorized into Amritsar I and Amritsar II and similarly for other cities in Punjab also. This information about customer or suppliers’ jurisdiction which is entirely an internal matter of the department is totally uncalled for. 

2.      Work sheet 1- Point 1G talks about percentage use of capital asset. What is the

parameter of determining the % use of capital asset and whether Rule 19 of Punjab Vat Rules 2005 is in synchronization with such requirement.

3.     In Miscellaneous Information: Information regarding payment to contractors and tax deducted in being called for while at the same time separate return Vat 27 is required to be filled in thus information is being repetitively called for without scrapping Vat-27

4. No notional ITC is required to be reversed on inter state sale of goods under law, then why information on reversal of notional ITC on interstate sale is being called for and should be done away with.
5. Deduction of purchases of petrol and diesel in Trial Vat 15 shall imply denial of

ITC on purchases of petrol and diesel which is not the intent of legislation.

6. Vat 15 Point 2(o) under Purchase detail required deduction of labor paid on job Work which by no stretch of imagination can be part of purchase and such like items only add to confusion and not clarification or simplification.

7. Point 5m under Calculation of Input Tax Credit should be worded reversal of ITC

instead of retention of ITC.

8. In Work sheet 1, instead of using the words “apportionment with accounts maintained” should be replaced by “apportionment where identification of goods is possible” so that information is according to Rule 23 and Rule 24.
9. Information regarding value of tax free Goods resold and total tax free sale also appears to be misfit in scheme of Point IB of WS-1
10. In WS-6, in point 6A, rate wise bifurcation of sale further requiring separate information on sale to taxable person and retail sale is also without any sense of propriety.
11. In Vat 24 , calculation of output tax under section 19(1) only is called for and non mention of out put tax on purchase under s. 20(1) is a big miss.
12. Trial Vat 15 does not clarify as to whether Transit Sale against E-I,E-II forms which takes place with in state will find place in Vat 18 or Vat 23.
13.  Further it is not possible to give detailed quarterly information required to be given in case of contractors, which will require quarterly finalization of accounts putting undesired burden on unorganized sector of the economy.
14. Mandating the information on GR No. and date shall also tantamount to increasing unnecessary paper work. This information is already available at ICC barrier and is mentioned on the bills also. 
15. Sale Detail under Vat 15 should provide for "other deductions"
16. Dealer should not made to seek permission for providing consolidated/summary information as is evident from wording used. The wording of forms should be changed to make it optopnal

Most of the points raised were taken care by the department except 3,6,and 16.